MELBOURNE (BRAIN) — BikeExchange Limited, the international digital marketplace for cycling products, has completed its initial public offering and will now be listed on the Australian Securities Exchange on Tuesday local time (late Monday in the U.S.).
The company has raised AU$20 million ($15.3 million) at AU$0.26 per share as part of the IPO process. That values the company at AU$76.9 million. The company's ASX code is BEX.
Global Chief Executive Officer, Mark Watkin, said, "Today marks a significant milestone for our business, from its humble beginnings as a concept 14 years ago, to now being a leading global marketplace for all things bike. Our initial public offering will help us to scale our business and support future growth. Cycling, in addition to sport and recreation, is playing an increasing role in mobility and transport globally, as infrastructure and behaviors change.
"Our ambition is simple: to help as many people around the world to purchase a bike or related product by connecting them with retailers and brands on our sites."
BikeExchange hosts over 1,500 brands, 1,450 retailers, and over 600,000 products globally, reaching an audience of 29.1 million consumers each year. Across its sites globally, the marketplace generated over $1.5 billion sales leads and inquiries value in the first half of its fiscal 2021.
The company's 2020 calendar year revenue was AU$3.7 million; its loss for the year was AU$2.6 million according to its aggregated financial statements for the last three years. The 2020 revenue was down 7% from its 2019 revenue of AU$3.9 million. In 2019 it recorded a loss of AU$5.6 million.
The company currently generates nearly half of its revenues from the scalable subscription model it offers cycle stores and brands. The rest is from a share to the transactions that take place on its platform. "Our business model provides a low-cost entry for retailers and brands, to showcase their products online and tap into a growing and focussed global audience," said Mark Watkin.
"The funds raised from our initial public offering will be invested in growth initiatives, such as: strategies to convert existing sales leads on our site to e-commerce transactions, increasing the retailer, brand accounts and key partnerships on site, and improving the customer experience through technology and products.
"We are excited about the future prospects of BikeExchange. Our business is strongly positioned to benefit from key long-term global trends such as the movement for greener modes of transport, continued growth in consumers shopping online, and, health and wellbeing trends.
More information: Bike Exchange's IPO Prospectus.
